Yours or Mine?

Rather than implementing traditional compliance program control elements—including codes, training and whistleblowing systems—when dealing with third parties, more and more global companies are educating their own employees and choosing to work with those suppliers who are ethically compatible.

According to Finding a Delicate Balance: Third Party Ethics Requirements , a report by The Conference Board and the Ethics and Compliance Officer Association, most of the companies surveyed said they preferred to use their own code of conduct for employees when it comes to dealing with third parties and compliance risk.

Why? Not only can compliance programs be difficult to implement, but imposing requirements on suppliers may also give rise to expectations that exceed the company’s ability to monitor or enforce its compliance standards.

The survey also found that most companies considered a partner’s ethical fit the key to maintaining high third-party business conduct standards.

Source: The Conference Board’s Finding a Delicate Balance: Third Party Ethics Requirements , www.conference-board.org .